98% of CEOs are preparing for a US recession, with confidence at its lowest since the Great Depression

According to the Conference Board, 98% of CEOs surveyed are prepared for a US recession, while 99% are ready for an EU recession. “CEO confidence fell further to begin Q4 and is now at its lowest level since the Great Recession,” according to the group.

98% of CEOs Expect Recession in the US

On Thursday, the Conference Board released its Measure of CEO Confidence. The board is a global, non-profit research organisation with over 1,000 public and private enterprises and organisations from 60 countries as members.

The Measure of CEO Confidence is “a barometer of the health of the U.S. economy from the perspective of U.S. chief executives,” The Conference Board described, adding that its Q4 survey was conducted between Sept. 19 and Oct. 3 and a total of 136 CEOs participated.

“The recent survey asked CEOs to describe the economic conditions they are preparing to face over the next 12-18 months,” the board described, adding:

An overwhelming majority — 98% — said they were preparing for a US recession. Moreover, 99% of CEOs said they were preparing for an EU recession.

Dana M. Peterson, the chief economist of The Conference Board, commented: “CEO confidence sunk further to start Q4 and is at its lowest level since the Great Recession.”

Roger W. Ferguson, Jr., vice chairman of The Business Council and Trustee of The Conference Board, opined: “CEOs are now preparing for near-inevitable recessions in both the US and Europe. While the vast majority still expect the US recession to be short and shallow, nearly 7 in 10 believe the EU will enter a deep recession with serious global spillovers.”

Many people have forecasted that the U.S. economy will slide into a recession. JPMorgan CEO Jamie Dimon warned that recession could hit in six months and the stock market could easily drop 20% more. In June, the executive warned that an economic hurricane is coming, advising people to brace themselves. In August, the JPMorgan boss doubled down on his warning, cautioning that “something worse” than a recession could be coming.

Citadel CEO Ken Griffin said last month that inflation may have peaked but a recession is coming. “We’re in a very uncertain time for investors,” Griffin stressed. Tesla CEO Elon Musk also believes that we will have “a mild recession for 18 months.”

Lawmakers are also worried about the U.S. economy sliding into recession. Senator Elizabeth Warren (D-MA) said in August that she is “very worried” about the Federal Reserve raising interest rates and tipping the U.S. into recession.

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